sustainability report 2019areas of the peñol-guatapé, las playas, guadalupe, and porce reservoirs:...

SustainabilityReport 2019

Contribute to the harmony of lifefor a better world

Social andenvironmentalmanagement

Material topics

4

Social and environmental management

Water andbiodiversity

5


ContentsWater and biodiversity ...................................................................................................................... 6

Water conservation and biodiversity ...................................................................................16

Water use and effluents ......................................................................................................25

Management of impacts related to water and biodiversity ............................................39

Conservation of threatened species ..................................................................................48

6


Water and biodiversity

Integrated water resources and biodiversity management of Grupo EPM is based on the interdependence on said resources and on the importance of contributing to its care, keeping

the mandatory commitments and implementing different voluntary initiatives to protect the watersheds that are of interest for the group’s companies and in the areas of influence of their businesses, both through their own actions and in partnership with other stakeholders, for the

benefit of the territories and the communities.

Grupo EPM is aware of its interdependence on water and biodiversity and is committed to contribute to their care in the watersheds supplying its systems and reservoirs, to manage the impacts generated by its direct operations, and to protect the ecosystems located in the areas owned by the group, which means contributing to inform about them and to improve the environmental management in its projects and in the territories where the group is present.

Moreover, carrying out an integrated water resources and biodiversity management contributes to the sustainability of Grupo EPM itself and the territories where it operates, through joint activities with different stakeholders and taking into account the land use plan, the characteristics of the territories, the conservation of ecosystems, the supply and demand, and the risks related to water and biodiversity.

Relevance

The economic, social, and environmental value is influenced by water deficit which leads to water availability, shortage, and rationing, along with their consequent harmful effects on the quality of life of the population, their economic activities, and the health of ecosystems. The most critical aspects regarding availability are associated with drinking water supply for the population, industrial processes, power generation, and maintenance of ecosystem functions.

7


The economic, social, and environmental value is also affected when there is water excess and alterations in water quality. In general, supply and distribution systems can be affected, while impacts on availability, continuity, and quality of the water to be supplied are generated, as well as economic costs due to water losses, recovery works, rehabilitation, reconstruction of systems, and protection of ecosystems.

In terms of biodiversity, which has value in itself, it generates high economic, environmental, and social value for Grupo EPM because it is the functional basis for the maintenance and support of ecosystem services, necessary for climate regulation, the water cycle, the rainfall regime, soil protection, erosion control, and the conservation of the structure and composition of fauna and flora species, among others, while contributing to the availability of water resources.

8


Main achievements

Program, project,

initiative, or action

Challenges Company Achievements in 2019 Accomplishment

Water conservation and biodiversity

Implement watershed protection initiatives in priority areas for conservation, in order to accomplish the annual goal set for the water protection indicator (WPI) for Grupo EPM in 2019: 14,376 ha.It includes (grouped) the Cauca, Porce, Nare, Aburrá, Chinchiná watersheds and other watersheds, as well as some supplying Aguas Regionales.

Grupo EPM

In 2019, initiatives that had an impact in the protection of 19,619 ha in watersheds supplying the organization’s systems and reservoirs were developed.

Total

Contribute to the accomplishment of the WPI for Grupo EPM, through the implementation of protection initiatives in other watersheds in areas of interest:

EPM: 1,488 ha. CENS: 1,032 ha.ESSA: 611.4 ha.EDEQ: 235.15 ha.CHEC: 904 ha.

Grupo EPM

The transmission and distribution business contributed 4,66 7 ha in 2019 to accomplish the goals of Grupo EPM. Although EPM withdraw 307 ha due to the apportionment of a property by the owner, CHEC increased its contribution by 719 ha, which helped accomplish the transmission and distribution business goal.

Total

Conduct a study of fauna and flora in the areas of the Peñol-Guatapé, Las Playas, Guadalupe, and Porce reservoirs:

• Survey a baseline of fish species in the Guadalupe River watershed (2019).

• Report monitoring of biodiversity in Miraflores and Riogrande I, and take inventory of fauna and flora in La Sierra (2021).

• Define the viability of fish repopulation in Porce III (2020).

• Verify the importance of the lower watershed of the Porce River as a possible migratory route for fish species (2020).

EPM

• Survey a baseline of fish species in the Guadalupe River watershed: se realizó el estudio y se tiene informe final con resultados. Se encontró baja riqueza y diversidad en peces, y un ensamblaje dominado por especies introducidas como la trucha (Micropturus salmoides).

• Define the viability of fish repopulation in Porce III: field trips to different points of the Magdalena-Cauca watershed were made to take genetic samples and learn about the niche conditions in which the species lives; the movements between the Porce III reservoir and the Guadalupe River are being analyzed; and, finally, the genetics of Brycon henni is under analysis to determine the genetic variability of this species. The final report of the study will be available in 2021.

Total

9


Program, project,




Conduct a study of fauna and flora in the areas of the Peñol-Guatapé, Las Playas, Guadalupe, and Porce reservoirs:

• Survey a baseline of fish species in the Guadalupe River watershed (2019).

• Report monitoring of biodiversity in Miraflores and Riogrande I, and take inventory of fauna and flora in La Sierra (2021).

• Define the viability of fish repopulation in Porce III (2020).

• Verify the importance of the lower watershed of the Porce River as a possible migratory route for fish species (2020).

EPM

• Verify the importance of the lower watershed of the Porce River as a possible migratory route for fish species: the second field trip was brought forward during the upstream migration of the first semester of 2019 and progress is made with the identification of more than 28,000 fish larvae through molecular methods.

Total

Water use and effluents

Management of impacts related to water and biodiversity*

*The wastewater treatment plants (WWTP) treat the wastewater of the sanitation service users. This contributes to improving the quality of life of populations and caring for the environment.

Stabilize the Aguas Claras WWTP in 2019 and continue with the expansion of the San Fernando WWTP to guarantee the quality of the effluents, in accordance with the limits established by the discharge standard, after achieving the stabilization of the biological processes.

EPM

The Aguas Claras WWTP is stabilized and treats all the flow carried by the Interceptor Norte (North Interceptor) since November 2019. The expansion of the San Fernando WWTP water line is operating since October 2019.

Total

Modernize the El Retiro WWTP to allow for the tertiary treatment of wastewater in 2019 and the compliance with the parameters established by the discharge standard in 2020, thus protecting the use of the Negro River as a water source for water supply systems.

EPM

It is in the stage of completion and stabilization; EPM expects to comply with the discharge standard in 2020.

ParTial

Receive for operation the Aguas de Malambo WWTP in 2019 and achieve its stabilization in 2020.

Aguas de Malambo

The construction project for the WWTP is 90% complete, as the National Infrastructure Agency (ANI, as per its acronym in Spanish) has not provided the license to build the underground crossing that will connect the central and northern collectors to the wastewater pumping station. Once the company have the license by the ANI, it will proceed with the work. It is expected to resume the work in 2020.

Notaccomplished

10


Program, project,




Management of impacts related to water and biodiversity*


Valle de San Nicolás sanitation project: modernize the El Retiro WWTP to allow for the tertiary treatment of wastewater, thus protecting the use of the Negro River as a water source for water supply systems, and build the El Escobero and Don Diego WWTPs, so as to ensure compliance with Ruling 631 of 2015, after the stabilization of the biological processes. EPM

The El Retiro WWTP is in the stage of completion and stabilization; EPM expects to comply with the discharge standard in 2020. The investments in the Escobero and Don Diego WWTPs were postponed due to the contingency of the Ituango project.

ParTial


Save 7,170.09 m3 on water consumption at Emvarias’ operations facilities between the years 2017 and 2021.

EmvariasIn 2019, around 10,000 m3 was saved, which represents a 26% reduction. Total

Management of impacts related to water and biodiversity

Reduce the pollutant load discharged to the water sources as a result of the leachate generated in the La Pradera landfill, by assembling the equipment corresponding to the second phase of treatment in 2019, in order to improve the quality of the discharge by 60% once the second phase of the leachate treatment plant is operating and stabilized in 2020.

Emvarias

During the first semester of 2019, the company stabilized the second phase of the leachate treatment plant at the La Pradera landfill, with positive results regarding the reduction of the concentration of pollutants.

Total

11


Challenges

Program, project,


Challenge Year in which it is achieved

Scope and coverage Progress in management in

2019Company Business Territory


Implement watershed protection initiatives in priority areas for conservation, in order to accomplish the annual goal set for the water protection indicator (WPI) for Grupo EPM in 2020: 9,528 ha.

It includes (grouped) the Cauca, Porce, Nare, Aburrá, Chinchiná watersheds and other watersheds, as well as some supplying Aguas Regionales. Likewise the transmission and distribution business companies will contribute to the goal in other watersheds.

2020 Grupo EPM All the businesses Colombia Cumulative WPI

2016–2019: 76,505

Optimize the water quality monitoring network for the Porce II and Porce III reservoirs:

• Reduce or relocate the current monitoring stations.

• Reduce the number of parameters.

2020 EPM Power generation

Colombia – Antioquia

Assess the importance of the lower watershed of the Porce River as a possible migratory route for fish species.



Apply the hydrosedimentological model in the contributing watersheds of the Las Playas reservoir in order to define the priority areas for the conservation strategy.



12


Program, project,






Management of impactsrelated towater and biodiversity*


Comply with the parameters of the discharge standard in 2020 at the El Retiro WWTP, after the modernization of the plant completed in 2019.

2020 EPM Water and sanitation


Modernization of the El Retiro WWTP in 2019.

Remove the pollution load contributed to the Negro River surface water source, by optimizing the Tranvía WWTP, while ensuring compliance with the discharge standard (Ruling 631 of 2015). The construction is planned for 2022 and the plant is expected to be stabilized for the following year to be able to discharge the water to the surface source in better conditions in 2023.



Build stages 1 and 2A of the Interceptor Sur (South Interceptor) in the municipality of Caldas.



Reduce the pollution load discharged to the Urabá region watersheds, so as to favor the operation of the WWTPs of the municipalities of Apartadó, Carepa, and Turbo, guaranteeing compliance with the provisions established in the discharge standard, after the stabilization of the biological processes. In 2019 the resources from contributions under condition will be negotiated for the construction of the WWTP. Note: The accomplishment of this challenge depends on the management of resources to make the investment, either using the figure of contributions under condition or the figure of works instead of taxes.

2022 Aguas Regionales

Water and sanitation


Once the designs were completed, the company started the procedure to negotiate the resources for the construction of the treatment plants (contributions under condition and works instead of taxes).

13


Program, project,






Management of impactsrelated towater and biodiversity*


Receive for operation the Aguas de Malambo WWTP and achieve its stabilization.

2020 Aguas de Malambo

Water and sanitation

Colombia - Malambo, Atlántico

The construction of the WWTP is 90% complete; it is not operational because the ANI has not provided the license to build the underground crossing that will connect the central and northern collectors to the wastewater pumping station. The company expects to resume the work in 2020.


Assess the impact of the floating solar panel infrastructure on the water quality in the Peñol-Guatapé reservoir.



Reduce the pollutant load discharged to the water sources as a result of the leachate generated in the La Pradera landfill, in order to improve the quality of the discharge by 60% once the second phase of the leachate treatment plant is operating and stabilized in 2020.

2020 Emvarias Water and sanitation

Colombia –Antioquia

In 2019 the company stabilized the second phase of the leachate treatment plant at the La Pradera landfill, which reduced the concentration of pollutants.

14


In order to define the indicators, challenges, and goals associated with water and biodiversity, Grupo EPM takes into account the strategic planning, the big hairy audacious goal (BHAG), the corporate social responsibility and environmental policies, the integrated water resources and biodiversity management strategy, territorial studies and analyses, the identification of synergies with allies for the development of initiatives, historical information, the compliance with the related environmental regulations, among others.

As an example, the goals for the WPI were defined taking into account the strategic planning of Grupo EPM, the above-mentioned policies, and the characteristics of each hydrographic basin (land uses, problems, water models, possibilities of alliances with other stakeholders, etc.).

The goals associated with efficient water use and water saving at the facilities are defined taking into account the historical data of water consumption, its variations, the infrastructure conditions, technological possibilities for its improvement, and cultural matters. Some facilities have already reached very good levels on efficient use and saving of water; therefore, they are still under monitoring. If necessary, improvement plans are established in those facilities where progress has not yet been achieved, according to the technological and economic possibilities. Grupo EPM has indicators and goals associated with water and biodiversity in the balanced scorecard and in its different plans, which are regularly monitored at different levels of the organization.

Sustainable Development Goals

Related stakeholders

Customersand users Colleagues Community State

Grupo EPM people Investors Suppliers and

contractors

15


GRI standards disclosures and EPM indicators

103-1 Explanation of the material topic and its boundary.103-2 The management approach and its components.103-3 Evaluation of the management approach.303-1 Water withdrawal by source.303-2 Management of water discharge related impacts.303-3 Water recycled and reused.303-4 Water discharge.303-5 Water consumption.304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.304-2 Significant impacts of activities, products, and services on biodiversity.304-3 Habitats protected or restored.304-4 Red List species and national conservation list species with habitats in areas affected by operations.EU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas.306-1 Water discharge by quality and destination.EPM-01 Conservation areas.EPM-10 Water protection.

Scope and coverageCompaniesEmpresas Públicas de Medellín - EPMAguas Regionales EPMEmpresa de Aguas del Oriente AntioqueñoEmpresas Públicas de Rionegro - EPRioAguas de MalamboEmpresas Varias de Medellín - EmvariasEPM ChileAguas de Antofagasta - AdasaAguas Nacionales EPMCentral Hidroeléctrica de Caldas - CHECElectrificadora de Santander - ESSAEmpresa de Energía del Quindío - EDEQCentrales Eléctricas del Norte de Santander - CENSDistribuidora de Electricidad del Sur - DelsurEmpresa Eléctrica de Guatemala - EegsaHidroecológica del Teribe - HET

TerritoryColombia – Antioquia Colombia – CaldasColombia – Malambo, AtlánticoColombia – Norte de SantanderColombia – QuindíoColombia – SantanderChileEl SalvadorGuatemalaPanama

BusinessesWater supply Sanitation Electrical energy Natural gas

16


Water conservationand biodiversity

17


Water conservation and biodiversityThe protection and improvement of the hydrographic basins as well as the environmental services that they provide are crucial to ensure the availability of the water resource, the diversity of flora and fauna, the sustainability of the territories, and the quality of life of the communities.

The environmental conditions of the hydrographic basins have a direct impact on the water sources supplying the reservoirs and other systems. To help improve these conditions and prevent risks associated with the availability of water in its operations and in the populations served, Grupo EPM undertakes, directly and with other stakeholders, programs and projects for the integrated water resource and biodiversity management, by developing initiatives associated with the support to the system of protected areas, restoration and reforestation, promotion of sustainable practices and uses, environmental offset, payment for environmental services, and environmental awareness-raising for the protection of the environmental services that the hydrographic basins and their ecosystems provide.

Management in 2019

In 2019, Grupo EPM made progress with the road map deployment of its integrated water resources and biodiversity management strategy: Water and Biodiversity for Life and

Sustainability.

In 2019, it was possible to contribute to the protection of 19,618 ha in the watersheds supplying the group’s systems and reservoirs, for an accumulated of 76,505 ha in the

2016–2019 period, which is equivalent to the 56% of the goal of 137,000 ha established in the environmental dimension of the 2025 BHAG.

Moreover, Grupo EPM contributes to water and biodiversity care with the conservation of its properties that have a total area of 796.9 km2, of which 86% is located within declared protected areas, buffer zones, or zones with high biodiversity value that have not yet been

declared as protected areas. Of this total, 640.4 km2 corresponds to forest cover.

This report highlights that the companies of Grupo EPM give an account of 399 species in any conservation status in their operation centers—according to the International Union for Conservation of Nature (IUCN), national lists, and the Convention on International Trade in

Endangered Species of Wild Fauna and Flora (CITES). Therefore, the protection of forest cover and other associated ecosystems constitute refuges, habitats, and resources essential for

their survival.

18


Water protection and conservation areas

In compliance with the water protection goal established in the BHAG of Grupo EPM, various strategies are developed for that purpose in the hydrographic basins of the Porce, Grande, Aburrá, Porce-Alto Nechí, and Nare rivers (including La Fe and Negro-Nare), as well as the Cauca (including areas of influence of the Ituango project) and the Chinchiná watersheds, other watersheds in areas of influence of CHEC, some supply basins of Aguas Regionales in Urabá, and other basins in areas of influence of EPM and the affiliates CENS, ESSA, CHEC, and EDEQ.

The contribution in 2019 to the protection of 19,618 ha (196.18 km2) was accomplished through the implementation of strategies and initiatives such as:

• Forest conservation: including support to public and private protected areas and programs of payment for environmental services: 1,022.65 ha (10.22 km2).

• Restoration and reforestation: including restoration and the forestry encouragement program: 13,800.28 ha (138 km2).

• Sustainable practices and uses: including silvopastoral and agroforestry systems, live fences and barriers, good agro-environmental practices, erosion control, and rural basic sanitation systems: 1,757.82 ha (17.58 km2).

• Environmental offset and new protected areas: including purchase of lands for offset and new areas for the protection of reservoirs: 3,038 ha (30.38 km2).

Likewise, in its properties, Grupo EPM preserves natural forests and favors the recovery of vegetation cover through ecological restoration activities (active and passive), enrichment with native species, and establishment of forest plantations. Additionally, in these areas, biological information is collected and applied studies are conducted to make progress with the implementation of the integrated water resources and biodiversity management strategy.

19


Development of initiatives and alliances with other stakeholders

The following are some of the main programs and initiatives developed, directly or with other stakeholders, by the companies of Grupo EPM in 2019 to protect the hydrographic basins that supply their reservoirs or systems, as well as water and biodiversity:

• Integrated biodiversity management in areas of influence of power generation plants of EPM: continuity in the execution of an agreement with Universidad de Antioquia, through which the conditions of the otter population in Porce III is analyzed. The group took fauna and flora inventories in Playas, Peñol-Guatapé, Porce II, and Porce III and monitored the fish in the Porce II, Porce III, Troneras, and Miraflores reservoirs and main tributaries; cyanobacteria in Peñol-Guatapé and Riogrande II; and the presence of disease vectors under public health surveillance. The diagnosis of the fishery product management was discussed.

• Support to the BanCO2 program and other payment for environmental service structures, initiative to compensate farmer families for environmental services. Grupo EPM is involved in the program by supporting farmers, so that they take care of the forests and, thus, protect the fauna and contribute to the conservation of the environmental services that they provide. In recent years, EPM, CHEC, EDEQ, ESSA, CENS, and Aguas Regionales have signed agreements with the environmental authorities to contribute to the care of more than 12,000 ha (120 km2) of forest.

• EPM forestry encouragement program: through this program, over 2.7 million seedlings were provided to the communities and owners of land located in the hydrographic basins supplying the company’s reservoirs. For this purpose, the company has the La Montaña, Robledales, Guayacanes, and Guadales plant nurseries in Eastern and Northern Antioquia and is supported by 12 municipal plant nurseries in the Porce River basin. These plants are used in the protection of riverbanks, living fences, and restoration and improvement of forests.

• Participation of EPM, CHEC, and Aguas Regionales in the basin councils, consultative mechanisms that allow them to use the knowledge, experiences, and perspectives of the different stakeholders present in the territory for a better management. EPM participates in the basin councils of the Aburrá, Negro, Grande, Nare, and Samaná Norte rivers; CHEC, in the Chinchiná River basin council; and Aguas Regionales, in the basin councils of the Turbo and León rivers.

20


• Agreements and alliances with environmental authorities, municipalities, and other public and private entities to develop environmental protection projects and initiatives: this report highlights the protection and improvement of the hydrographic basins of the Riogrande II and La Fe reservoirs in partnership with Cuenca Verde Corporation; the identification of critical environmental services and the adjustment of simulation models that strengthen the design of the Paramos, Biodiversity, and Water Resources project in partnership with the Chinchiná River Basin Corporation; and the development of community projects for sustainable production and ecological tourism in the watershed of the Porce River in partnership with the United Nations Development Programme (UNDP). For more information on partnerships and agreements, refer to the Shared responsability for the environment section.

• Construction and commissioning of rural basic sanitation systems for more than 700 families and development of community monitoring strategies in the biological corridor of the puma from Eastern Antioquia.

• Biannual monitoring of water flows and water quality in the main tributaries of the reservoirs of EPM and monthly monitoring in the water sources supplying the water supply systems of EPM.

• Instrumentation of minor sources to improve the control of concession and environmental flows. In 2019 the pilot project in the Las Despensas, La Larga, and La Afluente sources was completed and the design stage for the implementation of the other sources began.

• Implementation of management activities for the conservation of epiphytes by EPM and CENS, through actions such as measurement of relocated species survival; monitoring of species in closed season (vascular epiphytes); evaluation of physical, reproductive, and sanitary status; and maintenance to ensure their survival.

• Installation of 13.62 km of covered cable in urban and rural areas of Antioquia. This cable protects the flora and fauna from the impact that the networks could cause.

• Trelec made progress with the installation of antibee plastics on transmission line poles in

central Guatemala and with the efforts to prevent the construction of bird nests in structures of electrical substations. With these actions, the company minimizes problems in the networks and protects the fauna.

https://2019.sostenibilidadgrupoepm.com.co/pdf/7.pdf

21


• Contribution to biodiversity and water care: this is made by implementing the management plan of the Bosques de la CHEC Forest Reserve; likewise, the group supports the business and community strengthening to foster the implementation of sustainable business processes with an environmental and social approach, using the methodology of business networks, in rural settlements and areas surrounding the Río Claro River basin and the San Julián stream in the municipality of Villamaría.

• Programs of awareness-raising and strengthening of the environmental protection culture aimed at the communities of the areas of influence of the projects and operations of Grupo EPM: the group holds awareness-raising and training activities regarding environmental topics, efficient water use and water saving, good environmental practices, and celebration of environmental days. The disclosure, promotion, and pedagogy of these activities is supported through social media, press releases, radio and television programs, workshops, and events. This report highlights the implementation of the EPM Cuidamundos (World’s Protector) and Unidos por el Agua (United for Water) programs, the awareness-raising and training on environmental care carried out in agreement with the UNDP for the development of productive projects, and the training plan for teachers on the management of hydrographic basins, biodiversity, and climate change, supported by the Colombian Ministry of Environment and Sustainable Development.

• Other noteworthy initiatives: the Guardianas de la Quebrada Cameguadua (Female Guardians of the Cameguadua Stream) program by CHEC; the guided visits of students from educational institutions in Urabá to the Aguas Regionales purification plants; the awareness-raising and training programs by CENS on natural resource conservation for students, contractors, the community, and workers; the awareness-raising program by ESSA on natural resource conservation for students in areas of interest; the awareness-raising programs on environmental care for Eegsa and Delsur workers; and the permanent programming of Fundación EPM in the Water Museum, where visitors learn to care for water and enjoy it with all their senses.

22


Main supply hydrographic basins

Main supply hydrographic basins Water supply and power generation

Basin Reservoir Main tributaries

Max. technical volume in

Mm3

Power stations/DWTP Company Use

Piedras Blancas stream

Piedras Blancas

Piedras Blancas stream – Chorrillos stream

*0.5 Villa Hermosa and La Montaña DWTPs EPM Water supply

Las Palmas stream La Fe

Las Palmas stream – Pantanillo and El Buey rivers

11.33 La Ayurá DWTP EPM Water supply

Grande River Riogrande II Chico River – Grande

River 185.87

• Manantiales DWTP• La Tasajera

hydroelectric power station

• Niquía power station

EPM

Multiple uses:

• Water supply • Power generation

Tenche River Miraflores Tenche River 102.22 Troneras and

Guadalupe III and IV. EPM Power generation

Guadalupe River Troneras

Nechí, Pajarito, Dolores, Concepción, Tenche, and Guadalupe rivers

28.92 Troneras and Guadalupe III and IV EPM Power generation

Grande River Quebradona Grande River 1.93 Mocorongo power

station EPM Power generation

Nare River Peñol – Guatapé

Pantanillo, Negro, and Nare rivers 1,071.69 Guatapé EPM Power generation

Guatapé River Playas Nare and Guatapé

rivers 69.57 Playas EPM Power generation

Porce River Porce II Porce River 142.71 Porce II EPM Power generation

Porce River Porce III Guadalupe and Porce rivers 155.9 Porce III EPM Power generation

Chinchiná River Cameguadua

Chinchiná and Campo Alegre rivers and downstream for the chain La Estrella stream

N.R. Ínsula and La Esmeralda CHEC Power generation

San Francisco River

San Francisco San Francisco River N.R. San Francisco CHEC Power generation

Lebrija River Linderos Lebrija River N.R. Palmas ESSA Power generation

Teribe River Bonyic Bonyic stream N.R. Bonyic Hidroecológica del Teribe Power generation

23


This report shows the main hydrographic basins that supply the reservoirs intended for water supply and hydroelectric power generation of Grupo EPM. Moreover, these hydrographic basins supply the populations and communities settled in them, as well as other productive sectors that use the water resources that they provide.

This table does not include the reservoir of the Ituango hydroelectric project, as it is in the construction stage, nor the catchment sources of the small power stations and the minor water purification plants.

(*) The usable volume of the Piedras Blancas reservoir for operation was established at 0.5 million m3 due to the age of the infrastructure and due to security reasons.

Areas owned by the companies of Grupo EPM – Land uses

Areas and land uses (km2) – Grupo EPM

Company / Business Reservoirs Built-up

area

Forests and natural areas

Forest plantations

Non-classified

area

Total area

Geographic location

CHEC – Power generation 1.0 1.1 64.9 0.0 0.0 67.0 Caldas,

Colombia

CENS – Transmission and distribution

0 0.1 0 0 0.1 0.2Norte de Santander, Colombia

Emvarias – Water supply and sanitation

0.0 0.4 3.3 0.0 0.1 3.8 Antioquia, Colombia

EPM – Water supply and sanitation

1.6 0.3 13.2 14.5 0.9 30.5 Antioquia, Colombia

EPM – Power generation 107.7 6.3 210.6 56.2 2.1 382.8 Antioquia,

Colombia

EPM – Ituango project 25.4 2.3 267.7 0.0 7.7 303.1 Antioquia,

Colombia

HET – Power generation 0.1 0.0 2.0 0.0 0.0 2.1 Panamá

Overall total 135.7 10.4 569.1 71.3 10.5 796.9

Source: Idsos 2019 (CHEC, Emvarias, EPRio, EPM, and HET), Génesis Geographic Information System (EPM).

Out of 796.9 km2 of operational areas of Grupo EPM, 640.4 km2 has forest cover (forest and natural ecosystems and forest plantations) of great importance for the protection of its systems and reservoirs and the hydrographic basins that supply them.

24



EPM-01 Conservation areas. EPM-10 Water protection (WPI).303-1 Interactions with water as a shared resource.304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.304-3 Habitats protected or restored.

Scope and coverageCompaniesEmpresas Públicas de Medellín - EPMAguas Regionales EPMCentral Hidroeléctrica de Caldas - CHECEmpresa de Energía del Quindío - EDEQElectrificadora de Santander - ESSACentrales Eléctricas del Norte de Santander - CENSEmpresa Eléctrica de Guatemala - EegsaDistribuidora de Electricidad del Sur - Delsur

TerritoryColombia - Antioquia Colombia - CaldasColombia - QuindíoColombia - RisaraldaColombia - SantanderColombia - Norte de SantanderGuatemalaPanama

BusinessesWater supply Sanitation Electrical energy

25


Water useand effluents

26



The water withdrawn by the companies of Grupo EPM comes mainly from surface sources, which are used in production processes such as water supply and hydroelectric power generation. Furthermore, the water withdrawn by the companies’ facilities for domestic use comes mainly from aqueducts and surface sources.

The companies of Grupo EPM analyze their use of water in production processes and facilities, as well as the type of supply sources, in order to implement initiatives and projects that allow them to use it in a more efficient way and contribute to its sustainability.

Moreover, the companies of the group manage their effluents such as the discharges of water used in hydroelectric power generation, as well as wastewater produced in their own facilities and wastewater collected from their customers and users through the sanitation service, thus avoiding the direct discharge, without treatment, of millions of cubic meters of wastewater to water sources and soils.

*In Colombia, Decree 1076 of 2015 defines effluent as the final discharge, to a body of water, a sewerage, or the soil, of elements, substances, or compounds contained in a liquid medium.

27


Management in 2019

The total volume of water used for production activities, cooling, and domestic use by Grupo EPM in 2019 was 20,146 Mm3, amount equivalent to 20 million megaliters, which are distributed as follows:

• 99.94% of the total volume of water used was surface water.• 87.64% of the total volume of water was used by EPM.• 12.36% of the total volume of water was used by the affiliated companies.

During the period reported, it was possible to save 3.14 Mm3 of the water used in the purification process, thanks to the use of recirculated water coming from backwashing. Likewise, in the hydroelectric power generation process, 32.71 Mm3 of water was reused, which optimized its use in these processes.

With the commissioning of the Aguas Claras WWTP, which joins the existing San Fernando WWTP, EPM collects and treats more than 84% of the Valle de Aburrá wastewater, preventing more than 140 t of organic matter per day from reaching the Aburrá River; this contributes to raising the level of dissolved oxygen in the river to an average of 5 mg/l, characteristic of decontaminated rivers.

Water use and effluent management

During 2019, progress was made in each company of Grupo EPM through the development of projects and initiatives associated with efficient water use and water saving and wastewater management. The following achievements stand out:

• Implementation of the treatment system of water coming from the process of filter sludge washing at the Caldas, La Ayurá, and Villa Hermosa drinking water treatment plants (DWTP), in order to properly manage their effluents.

• Non-revenue water management through the control of technical losses, activities for the control of commercial losses, and engagement and communication activities. In 2019 the volume of water losses in the system was 91.6 m3/year, 1.6 m3/year above the established goal.

28


• Progress made by EPRio with the identification of wrong connections in the rainwater and wastewater collection systems of the municipalities that it serves, and the necessary arrangements for correcting them. Moreover, it is carrying out a program to reduce commercial losses through the identification of illegal connections, the installation of anti-fraud devices, and the management for the installation standardization of meters.

• Recirculation, monitoring, and permanent registration of the water used for cleaning the filters of the La Ayurá, La Cascada, La Montaña, Manantiales, San Antonio de Prado, San Cristóbal, Villa Hermosa, and Aguas Frías DWTPs, in order to reduce losses and contribute to the efficient water use in the water purification process.

• Implementation of initiatives and activities in the development of water saving and efficient use plans at the facilities of EPM and its Colombian and international affiliates; it is worth mentioning, among others, the analysis of water consumption, the control of leaks, the identification of green areas to implement drip irrigation, and the awareness-raising and training campaigns on water care and use aimed at the staff.

• Implementation of the five-year water saving and efficient water use plan in Malambo. Among other programs, this report highlights the control of losses (installation of micro-meters for 81% of the total users), the monitoring in the catchment phase, and the educational and awareness-raising campaigns on water saving and efficient water use.

• Monthly monitoring of the water consumption in the EPM building, especially in relation to maintenance activities. Water consumption decreased by 3.9% compared to the previous year, although it is worth noting that in 2018 there was an increase as a result of the Bauer failure of the cooling towers and at the end of 2019 there was an increase due to tests at the fountain of life and its light show and to the building’s facade washing activities.

• Progress with the Valle de Aburrá sanitation and wastewater management plan (SWMP) through the construction and start of the stabilization process of the Aguas Claras WWTP, the start of the Interceptor Sur construction, and the completion of modernization and the start of expansion of the San Fernando WWTP. Likewise, the organization continues the execution of the La Iguaná, La García, Piedras Blancas, and El Salado projects to reduce the pollution load discharged by the sewerage system to the Aburrá River basin.

• Operation of the odor control system and preparation of a contingency plan in case of offensive odor generation at the San Fernando WWTP.

• Completion in 2019 of the designs of the Apartadó, Carepa, and Turbo wastewater treatment systems (WWTS). Similarly, the negotiations started to obtain resources from contributions under condition for their construction.

• Progress of 99% with the construction of the Aguas de Malambo WWTP.

29


Water-related risk management

To manage risks associated with water shortage in the places where Grupo EPM has operations, reservoirs, or water withdrawal systems to provide the services of water supply and hydroelectric power generation, the group carries out studies, installs and operates hydrometeorological stations, and uses hydrometeorological indicators and models of its own and of government entities such as the Institute of Hydrology, Meteorology and Environmental Studies (Ideam, as per its acronym in Spanish) and environmental authorities. Among all these activities, this report highlights the following:

• The National Study of Water (ENA, as per its acronym in Spanish), versions 2014 and 2018, presents the aridity index for Colombia and its different regions, which shows that the department of Antioquia—where the majority of EPM’s power stations or production sites are located (power generation and drinking water supply)—has a moderate aridity index or surplus surface water. Moreover, in areas such as La Guajira, there is a moderate to high aridity index, but in this region EPM generates power in a wind farm, which does not require water for production.

• As for the provision of the water supply service, EPM has 10 purification plants for which no significant impact is identified. However, the La Iguana, La Valeria, and Piedras Blancas lower supply watersheds show a medium water vulnerability index (WVI) in dry year, according to the update of the 2018 Plan for Land Use and Basin Management (POMCA) of the Aburrá River. The same happens with the Pantanillo River, according to the POMCA of the Negro River. For its part, Aguas Regionales, in the Turbo watershed, shows medium and high values of WVI, but in any case shows shortage vulnerability at a very high category according to the diagnosis of the POMCA of the León River, conducted by the Corporation for the Sustainable Development of Urabá (Corpourabá). In addition, the 2018 update report on the state of the water resource in Antioquia shows that some supply sources in the Western region show medium to high values for this index.

• The affiliated company Adasa is located in the Antofagasta region in Chile, which is associated with a scenario of extreme aridity determined by geography and climate. However, 45% of the total water consumed for its water purification processes comes from seawater, an abundant resource compared to other types of water sources.

30


• For the risk management associated with the availability of the water resource, EPM has a hydrometeorological information system that supports the planning, construction, and operation of drinking water supply and power generation projects. This system features approximately 200 hydrometeorological stations installed in the watersheds and tributaries of all its reservoirs and projects, located in the departments of Antioquia and La Guajira. These stations capture the information of various hydrometeorological variables in real time, using sensors and transmitting them through several systems such as GOES and Skada.

• As part of the deployment of its climate strategy, Grupo EPM has conducted studies with Universidad Nacional de Colombia for climate modeling in the areas where it has its systems and reservoirs. These studies make it possible to advance in resilient management and articulate mitigation and adaptation issues with the integrated water resources and biodiversity management strategy.

• For their part, EPM and Aguas Regionales manage the risks associated with water availability by conducting the Study of Alternatives for New Catchment Sources for the Urabá Region of Antioquia. They also have contingency plans to mitigate the impacts generated by the dry season on current sources and carry out awareness-raising activities on water care and efficient water use aimed at the communities.

• It is important to note that in Colombian regulations, the use of water resources for human consumption has priority over any other use, so there is no competition over this resource for water supply.

• Finally, studies, indicators, and models are important inputs for the definition of strategies, goals, infrastructure needs (modernization, expansion, interconnection, new projects), or new studies, among other aspects.

31


Water withdrawal

Grupo EPM water withdrawal(thousands of m3)*

2019 20,146,579 -15%

2018 23,697,825 6%

2017 22,450,889 38%

* 1 megaliter= 1,000 m3

Surface water2019 20,136,221 -15%

2018 23,689,239 6%

2017 22,443,686 38%

Water supply2019 1,162 -29%

2018 1,626 180%

2017 581 -13%

Other sources*2019 9,196 32%

2018 6,960 5%

2017 6,622 N.A.

*Other sources: Groundwater, sea/ocean, tank car, atmosphere (rainwater), and bottled water.

The 99.94% of the total volume of water used by the companies of Grupo EPM in 2019 corresponds to surface sources. The 15% reduction in the use of this type of water source is mainly due to the reduction by 5% of EPM hydroelectric power generation and also to the contingency reported by CHEC in the conduction of the Cameguadua reservoir to the Ínsula station, which limited the withdrawal for power generation during five months.

Similarly, the decrease in the water withdrawn from aqueducts is the result of the exit from operation of some facilities such as the Santa Fe de Antioquia WWTP and the adjustment in the classification of the type of source used by a facility of Aguas Regionales.

32


Water withdrawal from other sources

Water withdrawal from other sources(thousands of m3)

2019 9,196 32%2018 6,960 5%2017 6,622 NDA

Groundwater Thousands of m3

2019 1,362 -32%

2018 2,007 15%

2017 1,740 NDA

Sea/ocean Thousands of m3

2019 7,833 58%

2018 4,952 1%

2017 4,882 NDA

Tank car Thousandsof m3

2019 0.28 -3%

2018 0.29 -3%

2017 0.30 NDA

Atmosphere and bottled water Thousands of m3

2019 0.07 17%

2018 0.06 0%

2017 0.06 NDA

The increase in water withdrawal from other sources* is the result of the additional seawater demand by Adasa, caused by sand silting in the plant’s catchments during the winter.

The 87% of the groundwater withdrawn is used by Aguas Regionales for the provision of the water supply service in the Urabá region and the remaining 13% corresponds to catchment for domestic use at some power stations and substations.

The remaining sources of water withdrawal from other sources in the period are marginal and correspond to 276 m3 of water from tank cars that supply two EPM power substations and one Aguas de Malambo pumping station; 60 m3 of rainwater for domestic use at the EPM La Cascada substation; and 8 m3 of bottled water for a CHEC office. This type of water withdrawal is used in facilities where access to other sources such as aqueduct, surface water, or groundwater is difficult.

33


Water consumption and use

Grupo EPM water use(thousands of m3)*

2019 20,146,579 -15%

2018 23,697,825 6%

2017 22,450,889 38%

* 1 megaliter = 1,000 m3

Production2019 20,119,357 -15%

2018 23,694,132 6%

2017 22,446,867 38%

Cooling2019 26,457 800%

2018 2,941 -13%

2017 3,372 -96%

Domestic2019 765 2%

2018 752 16%

2017 650 -4%

Of the total volume of water used by the companies of Grupo EPM, 99.98% was used for production processes. Of this amount, 98.18% was used for power generation and 1.81%, for water supply.

The increase in water use for cooling in the last year is mainly due to the increase in the power generation at the La Sierra thermal power station.

Water recirculated or reused in EPM processesThousands of m3

Process 2017 2018 2019Hydroelectric power generation 29,588 24,561 32,710Thermal power generation 1 0.61 2Water supply 2,032 1,926 3,148Administrative and customer service facilities 73 72 0

Total 31,694 26,560 35,860

Source: Idsos application.

34


The increase in water reuse or recirculation is mainly due to increased power generation in the last year at the Guatapé hydroelectric power station and the La Sierra thermal power station, which are the stations that use this process in the highest proportion. The percentage of water reused in the power generation process with respect to the total water used in the same process is 17%; in addition, the percentage of recirculated water in water supply with respect to the total water used in the process is 0.89%.

The significant increase in recirculated water in the water supply process is mainly due to recirculation in the Manantiales DWTP, considering the quality of the water entering the plant. The volume of water used for water recirculation at the DWTPs depends on the quality of the sources caught; water recirculation takes place as long as it does not affect the quality of the drinking water produced at the plant.

Water for production purposes per Grupo EPM companyThousands of m3/2019

Aguas de Oriente

Aguas de Malambo

Emvarias

Aguas Regionales

Adasa

ESSA

CHEC

EPM Watersupply and sanitation

EPM Power generation0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

954

12

9,256

26,716

11,300

468,193

1,473,867

316,710

17,339,390

Power generation Water supply Wastewater treatment

The greater volume of water used by the companies of Grupo EPM is destined for hydroelectric power generation, followed by drinking water supply.

35


Water discharges

Power generation – Grupo EPM Water discharge(thousands of m3)

Discharges 2018 2019EPM - Hydroelectric power generation stations 21,524,726 17,312,798HET - Hydroelectric power generation station 395 499,460CHEC - Hydroelectric power generation stations 1,817,391 1,473,863EPM - Thermal power generation station (*) 2,921 26,449ESSA - Hydroelectric power generation station 468,193Total 23,345,433 19,780,764

The largest volume of effluents results from the discharges from power generation, which corresponds to the same volume of water used for this production process. These discharges are not reported as effluents because their quality is not negatively impacted in the generation process; on the contrary, this process generally helps to improve the quality of the receiving sources. The reason for the decrease in the total volume of water discharged compared to the previous year is the decrease in hydroelectric power generation in 2019.

Origin of effluents – Grupo EPM(thousands of m3)

2019 85,195 59%

2018 53,709 3%

2017 52,158 -64%

Production2019 58,165 16%

2018 50,315 6%

2017 47,519 -27%

Cooling2019 26,429 799%

2018 2,941 -13%

2017 3,369 -96%

Domestic2019 601 33%

2018 453 -65%

2017 1,270 125%

The largest volumes of effluents come from the WWTPs of Grupo EPM, where wastewater from users of the sanitation service is treated. The volume of water treated and discharged with better quality parameters than those of the receiving sources was 50.87 million m3 in these plants.

36


Source receiving effluents – Grupo EPM(thousands of m3)

2019 85,195 59%

2018 53,709 3%

2017 52,158 -64%

Surface water2019 80,116 94%

2018 50,100 6%

2017 47,047 -66%

Soil2019 166 43%

2018 115 330%

2017 27 4%

Sewerage2019 4,913 41%

2018 3,487 -31%

2017 5,085 4%

The 94% of effluents is discharged to surface water sources. The 63% corresponds to discharges from production activities; 93% of them have secondary treatment before their discharge at the El Retiro, San Fernando, and El Tranvía WWTPs and at the Emvarias leachate treatment plant. The effluents from the WWTPs are discharged to surface water sources after receiving the treatments in these plants to improve their quality. The effluents from the Aguas Regionales WWTP are not reported because its projects are in different stages of design, property purchase, construction, etc., in accordance with the SWMP timelines.

The facilities of the companies of Grupo EPM discharge their wastewater to the sewerage systems of the territories where they are located; those facilities that do not have access to these systems treat their effluents in their own WWTSs, which are discharged to the soil after treatment.

Furthermore, there are discharges to surface water sources of water used in the cooling process of the Guatapé and La Sierra power stations. The water used in this process does not suffer alterations in its quality.

37


Water withdrawal and discharge per category

• There are records with the total concentrations of solids (mg/l) taken from the main tributary of the power generation reservoirs and the discharge from the EPM stations. The information corresponds to samples taken in the first half of 2019, and the environmental compliance reports for the second half of 2019 are pending delivery. For the main tributaries of the Porce II and Porce III reservoirs, there are measurements of total solids (TS), dissolved solids (DS), and total suspended solids (TSS). In all cases the TS are less than 1,000 mg/l; thus, the total DS should also be lower and, therefore, all monitored sources and discharges are classified as fresh water or clear water (DS<1000 mg/l).

• There are records of TS in the water withdrawal sources for water supply of the EPM systems. The monitoring was conducted in the lower catchment area on a biannual basis in 2019. In all cases the TS are less than 1,000 mg/l; thus, the total DS should also be lower and, therefore, the monitored sources and discharges are classified as fresh water or clear water (DS<1000 mg/l), except for one measurement in the second semester of 2019 in the source supplying the Manantiales DWTP, which reported 1,174 mg/l; in this case, the source is classified as other types of water.

38



303-1 Interactions with water as a shared resource (Chapter Action: water conservation and biodiversity).303-2 Management of water discharge related impacts.303-3 Water withdrawal.303-4 Water discharge.303-5 Water consumption.306-1 Water discharge by quality and destination.

Scope and coverage

CompaniesEmpresas Públicas de Medellín - EPMAguas Regionales EPMEmpresa de Aguas del Oriente AntioqueñoEmpresas Públicas de Rionegro - EPRioAguas de MalamboEmpresas Varias de Medellín - EmvariasCentral Hidroeléctrica de Caldas - CHECElectrificadora de Santander - ESSAEmpresa de Energía del Quindío - EDEQCentrales Eléctricas del Norte de Santander - CENSDistribuidora de Electricidad del Sur - DelsurEmpresa Eléctrica de Guatemala - Eegsa Hidroecológica del Teribe - HETElektra Noreste - ENSAAguas de Antofagasta - Adasa

TerritoryColombia – Antioquia Colombia-Malambo, AtlánticoColombia – CaldasColombia – Quindío Colombia – RisaraldaColombia – SantanderColombia-Norte de SantanderChileEl SalvadorGuatemalaPanama

BusinessesWater supply Sanitation Electrical energy Natural gas

39


Management ofimpacts related towater and biodiversity

40



Grupo EPM, in the development, construction, and operation of its infrastructure projects, seeks to minimize negative environmental effects and maximize positive impacts. To this end, environmental restriction analyses (ERA), environmental diagnoses of alternatives (EDA), feasibility studies, and environmental impact assessments (EIA) are conducted since the early stages of the projects, aiming, among other things, to cause the lowest possible impact on water and biodiversity. The license or permit granted by the respective environmental authority establishes the environmental management plan (EMP) of the projects, which defines the impacted areas and their corresponding prevention, reduction, control, mitigation, offset, and correction actions.

Management in 2019

Grupo EPM protects 561.8 km2 of forests and natural ecosystems, 135.8 km2 of reservoirs, and 70.7 km2 of forest plantations. The sum of these areas represents a contribution to the

conservation of biodiversity.

The offset for impact management implemented by Grupo EPM in 2019 was for 10.75 km2, of which 9.71 km2 was for the Ituango hydroelectric project. The group achieved a 98.6%

progress (accumulated offset) of the cumulative goal of 179.76 km2.

The significant environmental impacts related to water and biodiversity of the projects by Grupo EPM are mainly generated during the construction phase. For the power generation and water supply businesses, these impacts have to do with loss of vegetation cover, effects on habitats, and fauna displacement in the flood zone of the reservoirs and in the infrastructure construction sites. Furthermore, the significant impacts in the power transmission and distribution projects are associated with the loss of vegetation cover in the corridors of the transmission lines and negative effect on wildlife, especially birds, where electrocution or collision caused by the power lines may occur.

By the same token, the greatest impact caused by the construction and operation of the WWTPs is positive and is related to the improvement of water quality during the operation, which entails benefits for the ecosystems and the communities where these types of systems operate. Furthermore, the significant positive impacts associated with solid waste management have to do with improving public health and the quality of life of the populations it serves and the significant negative impacts, with landfill leachates, which can affect the soil and water sources.

41


The companies of Grupo EPM manage the impacts of their projects, works, and activities by implementing the management measures defined in the EMPs. For said impacts, this report highlights measures such as the offset for conservation and the non-net loss of biodiversity, as shown in the table about areas impacted and offset in this chapter. With respect to fauna, rescue, relocation, repopulation, and monitoring activities are carried out in the relevant cases; protection measures such as the implementation of covered cables and underground lines are taken in the cases viable for these alternatives. In addition, landfill leachates are treated before dumping and Emvarias is working to improve the process with a state-of-the-art plant.

Regarding the impacts associated with water, this report emphasizes the management of effluents by the companies of Grupo EPM, which includes:

• In places where there is no access to sewerage systems, the management of discharges from the companies’ facilities is carried out in their own WWTSs.

• The management of wastewater collected from users through the provision of the sanitation service prevents millions of m3 of untreated wastewater from being discharged directly to water sources and the soil.

• The turbined water discharge for power generation is caught directly from water sources of the reservoirs. The force of the water passing through the headrace is used to move the generators and is discharged back to the same river where it was caught or to another river in the same basin. During the process, water movement provides greater oxygenation when it is discharged to the receiving water sources and helps to improve its conditions. Plans and protocols are established for the management of discharges, including, where appropriate, warning systems for winter floods and monitoring of quality parameters, including the temperature for cooling discharges of some thermal power stations. See more details on effluent discharges in the chapter Water use and effluents.

42


It is also worth noting some of the programs and initiatives developed by the companies of the group to manage impacts associated with water and biodiversity:

In 2019, Grupo EPM reported that 80.1% of the total area is located in forest or other vegetation cover of ecological importance around its operational centers, so that directly or indirectly impacted habitats are protected or restored. The strategies for the protection of natural ecosystems and the recovery of other areas intervened by the construction or operation of projects continue to be a powerful initiative for the management of impacts and the contribution to the conservation of biodiversity and ecosystem services with benefits for the territories. Only 1.3% of the total area corresponds to infrastructure required for the operation of the businesses.

Impacted and offset areas (km2) – Grupo EPM

Company / Business

Impacted area Offset goal Offset area in

2019Accumulated offset area

Total offset progress (%)

EPM-Ituango 65.94 174.58 9.71 173.8 99.55EPM-VP of Transmission 0.52 5.08 0.99 1.01 19.88

ENSA 0.11 0.1 0.05 0.05 50.00

Source: IDSOS, 2019.

Moreover, 17.2% of the total area corresponds to reservoir areas for power generation or drinking water supply, which in turn constitute new ecosystems that offer availability of resources, refuge, and habitat for different species of fauna and flora. During 2019, the company continued with the comprehensive management of reservoirs, including the control of invasive aquatic plants, monitoring of cyanobacteria, management of solid waste, and erosion control, in order to improve the environmental conditions. In addition, hydrobiological monitoring (including ichthyofauna) was conducted in some reservoirs and tributary streams.

Also, in the group’s own lands (operational centers), progress was made with the natural succession processes in 336.2 km2 through passive restoration, represented in the succession advance of vegetation, a natural action that is facilitated by land control and surveillance, an activity that also favors the preservation of 209.6 km2 of primary and secondary forests and the conservation of the fauna and flora present in them. Some of the projects conducted monitoring, inventories, or studies of flora or fauna contributing to the knowledge of biodiversity and to the decision-making to manage it comprehensively.

43


Furthermore, different silvicultural activities were implemented for the active restoration of 13.9 km2 to recover the ecosystem functionality of areas degraded either by the activities of the projects or by previous actions. Additionally, EPM continued with the management of forest plantations in 70.7 km2, where wood has been harnessed to contribute to the forest chain of northern Antioquia and to provide raw material to the Aldeas program, which seeks to make territories of EPM viable by building wooden houses and schools.

See the consolidated information about the areas of the operational centers of the companies of Grupo EPM in the chapter Water conservation and biodiversity (table Areas and land uses (km2) – Grupo EPM).

Protected, adjacent, or high-biodiversity areas (km2) in 2019 – Grupo EPM

Company / Business

Protected, adjacent, orhigh-biodiversity areas

Other areas

Total areas

Referenceprotected areaDeclared

protected AdjacentUndeclared

high-biodiversity

Total

CENS – VP of Power Transmission and Distribution

0.05 0.05 NDA

CHEC – Power generation 42.74 17.74 5.27 65.75 1.24 66.99

Bosques de la CHEC Forest Reserve, Los Nevados National Natural Park buffer zone

Emvarias – Water supply and sanitation

0.00 0.00 0.67 0.67 3.15 3.82 NDA

EPM – Water supply and sanitation

26.95 2.68 0.00 29.63 0.87 30.5 Nare Forest Reserve

EPM – Power generation 180.65 33.74 120.58 334.98 47.86 382.85

Playas Regional Forest Reserve and some municipal forest reserves.Regional Integrated Management District (DRMI, as per its acronym in Spanish) of the Peñol-Guatapé reservoir and the upper basin of the Guatapé River, Cacica Noria DRMI

EPM – Ituango 89.62 62.88 100.38 252.88 50.19 303.06 Peque DMRI

HET – Power generation 16.44 0.00 0.00 16.44 0.00 16.44 Palo Seco Protected Forest

Overall total 356.4 117.09 226.9 700.35 103.31 803.71

Source: IDSOS 2019 (CENS, CHEC, Emvarias, EPM, EPRio, and HET).

Note: Only protected areas with statute established by competent environmental authorities are referenced. The information of EPRio is included, from this report on, in EPM – Water supply and sanitation.

44


For the companies of Grupo EPM, 789.3 km2 was reported in operational areas. However, protected areas are larger (803.7 km2) because HET reports that it has a concession for the administration of 11.99 km2 of the Palo Seco Protected Forest, where 2.14 km2 of its property is included. Thus, of the total area, 44.3% is within any statute of protection, 28.2% is in buffer zones of (adjacent to) protected areas, and 14.6% is considered important ecosystems for the conservation of biodiversity, which are not included in declared protected areas. Grupo EPM continued working with the environmental authorities and other stakeholders to expand and strengthen the system of protected areas, contributing to the conservation of ecosystems and the species inhabiting them.

Compared to previous years, 2019 had a decrease in the adjacent areas reported by the release of the EPM Chile report; however, with the CENS report and the increase in offset areas of the Ituango hydroelectric project, there is an increase in the contribution to declared protected areas and undeclared high-biodiversity areas.

Protected, adjacent, or high-biodiversity areas(km2) 2017, 2018, 2019

2017 report 2018 report 2019 report

0

100

200

300

400 346.9

Declared protected Adjacent Undeclared high-biodiversity

348.5 356.4

124.4 131.9 117.1

223.4 226.6 226.9

Source: IDSOS, 2017, 2018, and 2019.

45


Areas impacted by transmission and distribution projects (km2) in 2019 –Grupo EPM

Company – BusinessTotal line

or network length (km)

Built-up area – Easements

(km2)

Line or network length in protected area (km)

Total protected area (km2)


3.3 0.1 0.1 0.1

CHEC – Power Transmission and Distribution 58.0 0.0 1.1 1.1

Delsur – VP of Power Transmission and Distribution

3.9 0.0 0.0 0.0

ENSA – VP of Power Transmission and Distribution

0.6 0.1 0.0 0.0

EPM – VP of Power Transmission and Distribution

146.9 1.0 1.0 1.0

EDEQ – Deputy Manager’s Office of Maintenance, Substations, and Lines

157.3 0.0 0.0 0.0

Eegsa – Power distribution 565.2 0.1 0.1 0.1Trelec – Power transmission 21.8 0.0 0.0 0.0Overall total 957.0 1.3 2.3 2.3


In power transmission and distribution project activities, Grupo EPM impacts vegetation cover with the construction and maintenance of easements in protected areas (2.3 km2). Nevertheless, impacts on forests, natural ecosystems, and communities were reduced by ending the closed season for endangered species, subtracting protected areas, offsetting forests, and carrying out other impact management actions.

46


Areas impacted by transmission and distribution projects (km2) in 2019 –Grupo EPM

Company – Business

Impacted area (km2)

Target offset area

Offset area in 2019

Accumulated offset area

Progress percentage

CHEC – Project area 0.003 0.012 0.012 0.012 100%

Delsur – VP of Power Transmission and Distribution

0.010 0.010 0.010 0.010 100%


0.010 0.060 0.060 0.060 100%

EPM – VP of Ituango Project 65.946 174.581 9.712 173.820 100%


0.980 0.750 0.980 0.980 131%

Overall total 66.95 175.41 10.77 174.88


For impact management in 66.95 km2, Grupo EPM has a progress of almost 100% in the cumulative offset area as of 2019.

47



303-1 Water withdrawal by source.GRI 303-2 Management of water discharge-related impacts.GRI 304-2 Significant impacts of activities, products, and services on biodiversity.EU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas.

Scope and coverageCompaniesEmpresas Públicas de Medellín - EPMEmpresas Varias de Medellín - Emvarias

TerritoryColombia – AntioquiaColombia – CaldasColombia – SantanderColombia – Norte de Santander


48


Conservation ofthreatened species

49


Conservation of threatened species

Given that Grupo EPM is located in different countries of Latin America, countries located, in turn, in various biogeographic regions and ecosystems, there is a broad report of the biodiversity of the neotropical realm and mainly of the species of fauna and flora in some status of threat, which find their habitat in the 56,180 ha (561.8 km2) of forests and other covers of ecological importance in the operational areas owned, leased, or managed by the companies of the group.

Additionally, Grupo EPM is committed to the comprehensive management of biodiversity and ecosystem services through different projects and initiatives of its own or in collaboration with other stakeholders, some of them mandatory and others voluntary, so as to support the conservation of species of flora and fauna threatened mainly by the loss or alteration of their habitats, the pollution of the environment, or their overexploitation in the different territories where the group develops its operations.

In the development of this action, Grupo EPM takes into account the lists of threatened species according to national regulations and the IUCN; likewise, the group lists the species in closed season at the international (according to the CITES), national, or regional (according to Colombian regulations) levels.

In 2019 Grupo EPM reported in its operational areas in five countries (Chile, Colombia, Guatemala, El Salvador, and Panama) 399 species in some status of threat, 146 according to IUCN, 150 in national lists, 221 reported in the CITES, and 174 in closed season at the national

or regional levels. The most representative biological groups were epiphytes (119 species) and birds (116 species).

Grupo EPM continued the inventories of fauna and flora, implementation of conservation strategies for threatened species, study and applied research, protection and restoration of

its own areas, support for protected areas, and implementation of management measures to improve the habitats of threatened species.

To get to know the biodiversity of the fauna and flora of the different territories where it develops its operations, Grupo EPM registered 635 threatened species in five countries (Chile, Colombia, Guatemala, El Salvador, and Panama) in 2019. Of the total registered there are 399 different species, some common among countries (Iguana iguana (iguana), Panthera onca (jaguar), and Cedrela odorata (cedar); other migratory (Setophaga cerulea); and other endemic (Dendrobates truncatus (yellow-striped poison frog) and Spheniscus humboldti (Humboldt penguin)).

50


Of the total species, 134 are on the IUCN list (222 reports), 146 on national lists (247 reports), 221 are in international closed season (362 CITES reports), and 174 are in national or regional closed season (174 reports only for Colombia). The increase in national closed seasons had to do in part with the reports of vascular and nonvascular epiphytes, resulting from the characterization study of the Porce III hydroelectric power plant (99 reports).

During 2019, Grupo EPM monitored the flora, terrestrial fauna, and ichthyofauna in the protected areas of the Porce II and Porce III reservoirs and made progress with the study of the endemic sabaleta species (Brycon henni) and the alternatives for its repopulation. It continued with the studies of migratory fish species in the Porce River and with the characterization of the fauna associated with forest plantations of the Guatapé hydroelectric power plant. It also made progress with the implementation of the conservation strategy of the silvery-brown tamarin (Saguinus leucopus) and the neotropical otter (Lontra longicaudis) in Porce III.

In the Ituango project, Grupo EPM continued with the hydrobiological monitoring in the middle and lower basins of the Cauca River and it has also been making progress with the design, implementation, and discussion of monitoring, follow-up, management, protection, and conservation strategies for focal bird species (Aburria aburri, Ara militaris, Clytoctantes alixii, Myrmeciza palliata, Contopus cooperi, Hypopyrrhus pyrohypogaster, Icterus icterus, Myiarchus apicalis, Odontophorus hyperythrus, Ortalis columbiana, Psittacara wagleri, Ramphastos ambiguus, Ramphastos vitellinus, Thryophilus sernai, and Ramphocelus flammigerus). This is supported by the study of potential receiving areas and their floristic composition to understand the dynamics of these bird species. Finally, CENS monitored the effectiveness of flight diverters for its transmission lines.

In general, species reports are prepared from monitoring or inventories for project prefeasibility and feasibility studies. From this, permits are processed before the competent environmental authorities and alternatives such as rescues and offset are proposed. These measures include, for instance, the planting by Emvarias of threatened species such as Syagrus sancona, Bombacopsis quinata, Swietenia macrophylla, and Cariniana pyriformis as forest offset.

51


Report on the number of species by threat list, country, company,and business of Grupo EPM – 2019

Country BusinessRecords / Species

IUCN* National lists* CITES Closed season***

Amt. CR EN NT VU Total 2** 3** CR EN NT VU Total I II Total Natl.Natl.

– Reg.

Reg. Total

Chile Adasa – VP of Water and Sanitation

No. of recs. 10 1 5 4 10 5 5 3 3

No. of spp. 6 1 3 2 6 4 4 2 2

Colombia

Aguas Nacionales – VP of Water and Sanitation

No. of recs. 1 1 1 1 1

No. of spp. 1 1 1 1 1

Aguas Regionales EPM - VP of Water and Sanitation

No. of recs. 6 1 1 1 3 4 4 3 3 6

No. of spp. 4 1 1 1 3 1 2 3 3 1 4


No. of recs. 6 6 6

No. of spp. 6 6 6

CHEC – Power generationNo. of recs. 38 6 14 12 32 7 15 22 7 10 17

No. of spp. 38 6 14 12 32 7 15 22 7 10 17

Emvarias – VP of Water and Sanitation

No. of recs. 20 3 3 9 15 2 3 6 11 3 7 10 5 1 2 8

No. of spp. 20 3 3 9 15 2 3 6 11 3 7 10 5 1 2 8

EPM – VP of Water and Sanitation

No. of recs. 20 2 1 1 4 8 2 6 8 16 3 3 7 1 1 9

No. of spp. 20 2 1 1 4 8 2 6 8 16 3 3 7 1 1 9

EPM – VP of Power Generation

No. of recs. 248 2 13 17 19 51 4 7 22 33 12 163 175 105 7 112

No. of spp. 180 1 7 12 10 30 2 4 12 18 7 120 127 98 3 101

EPM – VP of Projects and Engineering

No. of recs. 62 3 3 7 24 37 2 6 31 39 14 14 4 4

No. of spp. 62 1 2 5 13 21 1 3 15 19 10 3 3


No. of recs. 142 3 5 7 14 29 5 12 3 21 41 10 78 88 28 3 7 38

No. of spp. 123 3 3 6 12 24 4 10 3 14 31 9 70 79 21 3 6 30

ESSA – VP of Transmission and Distribution

No. of recs. 14 2 7 9 1 6 3 10 1 1 3 3

No. of spp. 12 2 5 7 1 4 3 8 1 1 3 3

Subtotal ColombiaNo. of recs. 557 13 32 51 89 185 16 47 3 111 177 36 285 320 145 5 24 174

No. of spp. 351 9 20 31 48 108 11 26 3 54 93 19 185 204 127 4 13 144

52


Report on the number of species by threat list, country, company,and business of Grupo EPM – 2019

Country BusinessRecords / Species

IUCN* National lists* CITES Closed season***

Amt. CR EN NT VU Total 2** 3** CR EN NT VU Total I II Total Natl.Natl.

– Reg.

Reg. Total

El SalvadorDelsur – VP of Power Transmission and Distribution

No. of recs. 24 2 3 8 4 17 2 8 8 6 24 5 7 12

No. of spp. 24 2 3 8 4 17 2 8 8 6 24 5 7 12

Guatemala Eegsa – Power distributionNo. of recs. 12 1 1 8 4 12 1 1

No. of spp. 12 1 1 8 4 12 1 1

Panama


No. of recs. 20 4 1 5 1 11 12 6 11 17

No. of spp. 9 2 1 3 1 5 6 2 4 6

HET – VP of Power Generation

No. of recs. 12 1 2 2 5 3 9 12 5 3 8

No. of spp. 12 1 2 2 5 3 9 12 5 3 8

Total records 635 15 24 70 101 210 8 4 20 58 11 142 243 55 307 362 145 5 24 174

Total species 399 11 24 44 55 134 8 4 14 35 11 78 150 28 193 221 127 4 13 144

Source: IDSOS application, 2019 (EPM, CHEC, CENS, ESSA, Aguas Nacionales EPM, Aguas Regionales, Emvarias, Delsur, Adasa, Eegsa, ENSA, and HET).

* Categories: critically endangered (CR), endangered (EN), vulnerable (VU), and near threatened (NT).Conservation status (IUCN: https://www.iucnredlist.org/; CITES: http://checklist.cites.org/; Colombia: Ruling 1912 of 2017; Chile: National Species Inventory http://especies.mma.gob.cl/; Guatemala: List of Threatened Species, LEA, 2008; Panama: Ruling DM-0657 of 2016; El Salvador: https://historico.elsalvador.com/historico/129130/los- 10-animales-en-peligro-de-extincion-en-el-salvador.html.) ** The species reported in the national list for Eegsa in Guatemala are not standardized according to the conservation categories of the IUCN and have their own numerical categories ranging from 1 to 3. *** The categories of national and regional closed seasons apply for Colombia according to Inderena and regional autonomous corporations.

The main reports of threatened species were observed in EPM projects (303), followed by reports in power transmission and distribution affiliates (57), power generation affiliates (48), and water supply and sanitation affiliates (11). There are 10 critically endangered (CR) species in the IUCN reports including Ateles hybridus (variegated spider monkey), Crax alberti (blue-billed curassow), Dermochelys coriacea (leatherback turtle), Eretmochelys imbricata (hawksbill turtle), Hampea thespesioides (wild achote), Magnolia espinalii (magnolio), Pimelodus grosskopfii (barbudo, capaz), Pitcairnia lindae (bromelia), Podocnemis lewyana (Magdalena River turtle), and Saguinus oedipus (cotton-headed tamarin). These species find habitat, refuge, and resources for their survival in the protected areas of the operational centers.

53


In general terms, since the companies of Grupo EPM are located in different countries, altitudinal gradients, and latitudes, among other unique features of each territory, there is representation of various types of natural ecosystems such as paramos, deserts, dry forests, tropical rainforests, among others, as well as the reservoirs that are configured as artificial ecosystems. In all these environments, species from different biological groups are protected, several in any conservation status. In 2019 there were 635 records, of which 59% corresponds to fauna; birds are the most representative group since they are very conspicuous, with a representation of 116 species. The vascular and nonvascular epiphytes, almost completely in closed season, greatly increased the reports of flora with a representation of 119 species. The trees follow in number of records (98) with 60 threatened species.

Number of species by biological group –Total threatened species according to the IUCN and CITES

Biological group

Number of records

Amount of species

Conservation status CITES ClosedseasonsCR EN NT VU Total I II Total

Amphibians 20 11 0 2 2 3 7 0 4 4

Birds 201 116 1 4 27 15 47 7 72 79

Mammals 79 35 3 4 8 8 23 14 11 25

Fish 43 17 1 1 2 5 9

Reptiles 31 17 3 1 2 4 10 5 7 12 4

Subtotal fauna 374 196 8 12 41 35 96 26 94 120 4Tree ferns 26 16 0 0 0 3 3 0 16 16 26

Palms 13 8 0 2 0 0 2

Trees 98 60 2 8 3 17 30 0 4 4 28

Epiphytes 124 119 1 2 0 0 3 2 79 81 116

Subtotal flora 261 203 3 12 3 20 38 2 99 101 170Overall total 635 399 11 24 44 55 134 28 193 221 174

Source: IDSOS application, 2019 (EPM, CHEC, CENS, ESSA, Aguas Nacionales EPM, Aguas Regionales, Emvarias, Delsur, Adasa, Eegsa, ENSA, and HET).

* Categories: critically endangered (CR), endangered (EN), vulnerable (VU), and near threatened (NT).Conservation status (IUCN: https://www.iucnredlist.org/; CITES: http://checklist.cites.org/)

Compared with the records of the last three years, there is a notable increase in the amount of species in 2019, because this year fauna and flora monitoring was carried out at the Porce II and III hydroelectric power plants, with a comprehensive report of epiphytes (99 species). In addition, Delsur added its own species this year.

54


2017

2018

2019

CR EN NT VU

4 10 21 25

2 13 19 22

11

2017 2018 2019

24 44 55

0102030405060

IUCN threatened species – 2019

Source: IDSOS (EPM, CHEC, CENS, ESSA, Aguas Nacionales EPM, Aguas Regionales, Emvarias, ADASA, Eegsa, ENSA, and HET).

* Unlike previous reports, this report takes into account multitemporal analyses.

2017 2018 2019

050

100150200250300350400450

25

Mammals Birds Reptiles Amphibians Fish Trees Palms Others

19 3558 68

116

835 17 13 14 11 19 17 17

61 56 6011 11 8 12 12

135

207232

399

Number of threatened species by biological group in 2017, 2018, 2019

Source: IDSOS (EPM, CHEC, CENS, ESSA, Aguas Nacionales EPM, Emvarias, EPM Chile, Adasa, Eegsa, ENSA, and HET).

¹ Others: ferns and epiphytes. Conservation status: the species reported in the IUCN are considered for this analysis (IUCN: https://www.iucnredlist.org/).

https://www.iucnredlist.org/

55



304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations. EPM-01 Conservation areas.EPM-10 Water protection.

Scope and coverageCompaniesAdasa - VP Agua y SaneamientoAguas Nacionales EPM - VP Agua y SaneamientoAguas Regionales EPM - VP Agua y SaneamientoCENS - VP Transmisión y Distribución de EnergíaCHEC - Generación de EnergíaEmvarias - VP Agua y SaneamientoEPM - VP Agua y SaneamientoEPM - VP Generación EnergíaEPM - VP Proyectos e IngenieríaEPM- VP Transmisión y Distribución EnergíaESSA - VP Transmisión y DistribuciónDelsur - VP Transmisión y Distribución EnergíaEegsa-Distribución EnergíaENSA - VP Transmisión y Distribución EnergíaHET - VP Generación Energía

TerritoryColombia – Antioquia Colombia – CaldasColombia – SantanderColombia – Norte de SantanderChileGuatemalaPanamaEl Salvador


56


SustainabilityReport 2019

www.sostenibilidadgrupoepm.com.co/en

sustainability report 2019areas of the peñol-guatapé, las playas, guadalupe, and porce reservoirs:...

Documents